Assets (in KD) Liabilities (in KD) Cash 20000 Accounts payable 80000 100000 Accrued expenses 210000 Notes payables Property, Equipment, Plants 1500000 Long-term borrowings Accounts receivable 100000 Inventory 180000 400000 Less: Amortization 50000 Total liabilities Total equity Total assets Total Liabilities and Total Equity Income statement Sales 900000 COGS 400000 Gross profit Operating expenses 200000 EBIT Interest expenses 50000 EBT Тахes 20000 Net Income The fixed asset turnover ratio can be explained as follows (Note: Show calculation steps in the reasons box)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assets (in KD)
Liabilities (in KD)
Cash
20000
Accounts payable
80000
Accounts receivable
100000 Accrued expenses
100000
210000 Notes payables
Property, Equipment, Plants 1500000 Long-term borrowings
Inventory
180000
400000
Less: Amortization
50000
Total liabilities
Total equity
Total assets
Total Liabilities and Total Equity
Income statement
Sales
900000
COGS
400000
Gross profit
Operating expenses 200000
EBIT
Interest expenses 50000
EBT
Taxes
20000
Net Income
The fixed asset turnover ratio can be explained as follows:
(Note: Show calculation steps in the reasons box)
Oa Each dinar of fixed assets is generating $0.6 in sales.
Ob Each dinar of fixed assets is generating $0.62 in sales
Oc Each dinar of sales is generating $0.6 in fixed assets
04 Each dinar of sales is generating $0.62 in fixed assets.
Transcribed Image Text:Assets (in KD) Liabilities (in KD) Cash 20000 Accounts payable 80000 Accounts receivable 100000 Accrued expenses 100000 210000 Notes payables Property, Equipment, Plants 1500000 Long-term borrowings Inventory 180000 400000 Less: Amortization 50000 Total liabilities Total equity Total assets Total Liabilities and Total Equity Income statement Sales 900000 COGS 400000 Gross profit Operating expenses 200000 EBIT Interest expenses 50000 EBT Taxes 20000 Net Income The fixed asset turnover ratio can be explained as follows: (Note: Show calculation steps in the reasons box) Oa Each dinar of fixed assets is generating $0.6 in sales. Ob Each dinar of fixed assets is generating $0.62 in sales Oc Each dinar of sales is generating $0.6 in fixed assets 04 Each dinar of sales is generating $0.62 in fixed assets.
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